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Corporate Presentation

September, 2011

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Disclaimer

The information contained in this presentation may include statements which constitute forwardlooking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to business, financial, trend, strategy and other forecasts, and are based on assumptions, data or methods that, although considered reasonable by the company at the time, may turn out to be incorrect or imprecise, or may not be possible to realize. The company gives no assurance that expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forwardlooking statements, due to a variety of factors, including, but not limited to, the risks of international business and other risks referred to in the company’s filings with the CVM and SEC. The company does not undertake, and specifically disclaims any obligation to update any forwardlooking statements, which speak only for the date on which they are made.

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The Company

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VCP and Aracruz Merged to Create Fibria

Shareholder Structure

Votorantim Industrial S.A. 29.34%

BNDESPar 30.42(1)

Free Float 40.24%(2)

(1) (2)

Position as of August 31, 2011. BNDESPar has 21% linked to a Shareholder’s Agreement with Votorantim Industrial S.A. during the first 3 years and 10.9% during the following 2 years. Free Float 40.17% + Treasury 0.07%

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Improved Corporate Governance

Improved Corporate Governance

Board and Committees

Listed on Novo Mercado, highest level of Corporate Governance at BM&F Bovespa
– – – – – Only 1 class of shares →100% vo ng rights 100% tag along rights (Brazilian corporate law establishes 80%) Board of Directors with minimum 20% independent members Financial Statements in International Standards – IFRS Adoption of Arbitration Chamber

Shareholders’ Meeting

Fiscal Council

Board of Directors

9 Members: 20% Independent Chairman ≠ CEO

Listed in the most important sustainability indexes

Board Advisory Committees(1)
Audit and Risks Personnel and Remuneration Finance Sustainability

Policies approved by the Board of Directors
– – – – – Liability and liquidity management Market risks Corporate governance Information disclosure Stock trading

Executive Officers

(1) Members’ performance assessed by independent consulting firm

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A Winning Player
Superior Asset Combination Main Figures(1)

Pulp capacity Paper capacity Net revenues Total area
Belmonte Veracel Caravelas Portocel Aracruz

million tons million tons R$ billion thousand ha thousand ha R$ billion X

5.25 0.16 6.2 1,062(2) 599(2) 7.9 3.2

Planted area Net Debt Net Debt/EBITDA

Três Lagoas Piracicaba Jacareí Santos

Port Terminal

Pulp Unit

Paper Unit

Source: Fibria (1) Last Twelve Months as of 2Q11. (2) As of June 30, 2011, including 50% of Veracel and excluding forest partnership areas (124 thousand ha).

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Modern Plants Lead to a Competitive Position in the Cost Curve
Três Lagoas – Mato Grosso do Sul – 1.3 million t/year Jacareí – São Paulo – 1.1 million t/year

Aracruz – Espírito Santo – 2.3 million t/year

Veracel – Bahia – 1.1 million t/year

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Fibria’s Strategy

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Clear Leadership Position

Industry Outlook (1)

Market Pulp Capacity Ranking 2010(2) (000t)
Fibria APRIL Arauco

Paper & Board 392 million t

5,250

57% Recycled Fiber 224 million t

43% Pulp 167 million t

APP Georgia Pacific CMPC Sodra Stora Enso Weyerhaeuser Suzano
34% Market Pulp 46 million t 46% 54% Hardwood 24 million t

20% Mechanical 33 million t

80% Chemical 134 million t

66% Integrated Mills 85 million t

Botnia/M-real UPM-Kymmene Domtar Ilim Mercer IP ENCE
64% Eucalyptus 16 million t

Bleached Softwood Kraft Pulp (BSKP) Bleached Hardwood Kraft Pulp (BHKP) Unbleached Kraft Pulp (UKP) Mechanical

Softwood/Other 22 million t

36% Acacia/Other 8 million t

West Fraser Canfor Cenibra
31%

69%
Other Eucalyptus Pulp producers: 11 million t
(1) (2)

0

1000

2000

3000

4000

5000

6000

RISI and PPPC: considers 2010 demand Hawkins Wright – January 2011

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Relevant Market Share and Competitive Position in the Cost Curve

Fibria’s Market Share (1)

Average Cash Cost of BHKP(2) (US$/t)
Mill Cash Cost Delivery Cost

11%

22%

586 104

549 54

540 55

519 95

509 47

497 52

454 37 371 65 352 73 329 53 276 322 55 267

482

495

485

424

462

445

417 306 279

Total Market Pulp: 48.5 million t

Total Hardwood Market Pulp: 25 million t

31%

Hardwood Cash Cost (US$/t) vs Capacity ('000 t)
800 700 Cash cost (US$/t) 600 500 400 300 200 100 0 (1) (2) PPPC Global 100: Market Share estimated considering 2010 demand Source: Hawkins Wright as of April 2011 and Fibria 1Q11 5000 10000 15000 Capacity ('000s t) 20000 25000 30000 Bleached hardwood kraft

10 million t

Total Eucalyptus Market Pulp: 17 million t

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Exchange Rates and Inflation Affect the Cost Structure
Exchange Rate Currencies Evolution versus Dollar (Index: Jan’03 = 100)
230 210 190 170 150 130 110 90 70 50 Rupia: 4% Canadian Dollar: 59% Chilean Peso: 52%

Real:116%

Inflation
Wood: cost of land and minimum wage growth above inflation Freight: low governmental investment in infra-structure (ports, roads, etc) and higher oil prices Chemicals / energy / water: global demand for commodities add pressure on main raw materials Labor: cost in Brazil in dollar terms is higher than in some developed countries 11

Global Presence
Fibria’s Commercial Strategy
Differentiation: Customized pulp products to specific paper grades Sole supplier to key customers focused on eucalyptus pulp to the tissue market The top 10 customers represent, on average, 70% of sales Over 20 years of relationship with many of the main clients Global contracts
P&W 23% Tissue 58% Speciali ties 19%

End-Use – 2Q11

46% 29%
N.America Europe

Nyon Miami

Csomád

14%
Asia

Hong Kong

11%
L.America

São Paulo

Source: Fibria – 2Q11

Fibria Sales Distribution

Fibria Offices

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Focus on Premium End-Uses

Fibria's Pulp Destination

Market Pulp Destination

2010-2025 Demand Growth (CAGR)

Source: Fibria 2Q11 Earnings Results, PPPC, RISI and Fibria

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Financial Highlights

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2Q11 Performance

Key Indicators
2Q11 Pulp Production (‘000 t) Pulp Sales (‘000 t) Paper Production (‘000 t) Paper Sales (‘000 t) 1,271 1,230 31 31 1Q11 1,319 1,259 29 36 2Q10 1,164 1,214 31 29 2Q11 vs 1Q11 -4% -2% 9% -15% 2Q11 vs 2Q10 9% 1% 2% 5%

Pulp Sales Mix

2Q10
11% 38% 24% 25%

1Q11
9% 14% 46%

2Q11
11% 46%

Net Revenue (R$ million) Pro Forma EBITDA (R$ million) EBITDA Margin (%) Financial Income (R$ million) Net Income (R$ million)

1,459 490 34% 277 215

1,548 607 39% 11 389

1,628 672 41% (310) 130

-6% -19% -5 p.p. -45%

-10% -27% -7 p.p. 66%

27% Europe

20% North America Asia

29%

Brazil/Others

Cash Cost without downtimes(R$/t)

EBITDA (R$ million) and EBITDA Margin (%)
41% 462 672 607 39% 34%

448

446 490

2Q10

1Q11

2Q11

2Q10

1Q11

2Q11

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Competitiveness Project

Actions for increased operating efficiency

Action

2011

2012

2013

Pulp Production ('000 t)
Production gain: +9% 1,271

2011 Capex reduction of R$201 million New bleaching line of Plant A – Aracruz Unit Higher operating stability Optimization of wood transportation by barges – Aracruz Unit Energy Matrix – Jacareí Unit Global Sourcing
448

1,164

2Q10

2Q11

Cash Cost without downtimes (R$/t)
+3% (lower than Brazilian inflation: 462 +6.5%)

Rail Extension – Três Lagoas Unit Long-term international logistics contract (STX) Future Forestry Project
2Q10 2Q11

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Debt

Debt Indicators
Short Term Debt (%)
(R$ million) Gross Debt Cash(1) Net Debt 2Q11 10,448 2,496 7,952 1Q11 10,256 2,297 7,959 2Q10 13,209 2,364 10,846 2Q11 vs 1Q11 2% 9% 0% 2Q11 vs 2Q10 -21% 6% -27% 2Q10
(1) Includes

Net Debt/ EBITDA(2) (x)

16% 14% 12%

4.7 3.2 2.9

1Q11

2Q11
(2) LTM

2Q10

1Q11

2Q11

the fair value of the derivatives.

EBITDA includes the results from Conpacel and KSR

Debt Amortization Schedule (R$ billion)
6.6

Debt by currency and instrument (%)
Debt by Currency Debt by Instrument
44% 16%

Short term debt: 14% of total debt
1.9 1.0 0.9 0.8 1.3 0.6 1.8 0.8 1.2 0.6

5.1

16%

84% 2016-2021 Domestic Foreign

7% 4% 23%
Bonds Former Aracruz Shareholders NCE

6%

2011

2012

2013 Jun/10

2014

2015

Jun/2011

BNDES Pre-Payment Others

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Liability Management
Promises delivered, now more ahead to go

Net Debt/EBITDA (x)

7.8 7.2 7.2 6.5 5.6
Net Debt (R$ bi)

15.7 13.2 13.1 11.0 10.9

4.7 3.9 10.8 3.6 3.2 10.2 2.9 9.9 7.9 7.9
Commitment to investment grade level

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11
Sale of Conpacel/KSR R$1.5bn Fibria’21 Bond Fibria’21: US$ 750MM 6.75% 10NC5 US$ 500MM Revolving facility + US$ 300MM EPP Covenants: 4.0x YE2011 Tight cost and CAPEX control 2011 Capex reduced by R$201 million Piracicaba Unit: indicative price of US$ 313MM

Sale of Guaíba US$ 1.4bn Fibria’19 Bond: US$ 1.0bn 9.25% 10NC5 Export pre-payment facilities: US$ 1.175bn

Fibria’20 Bond: US$ 750MM 7.5% 10NC5 Exchange Bond Fibria’19: 94% to Fibria’20 Operational cash generation Derivatives’ debt settlement: US$ 2.6bn Debt: lower cost longer tenor

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Investor Relations E-mail: ir@fibria.com.br Phone: +55 (11) 2138-4565 Website: www.fibria.com.br/ir

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